[Summary]
Recently, the infrastructure investment has been increasing and more foreign tourists has been spending money in Japan. Taking it into account, the Bank of Japan expects that profits of the 2020 Tokyo Olympics and Paralympics reach 25 trillion yen to 30 trillion yen from 2014 to 2020. It is said that Japan’s gross domestic product rises by around 1 percent by 2018 by sporting events. Moreover, the Tokyo Olympics is good chance for Japanese companies to advertise their products. It generates new consumption and makes a good impact on Japanese economy.
[Opinion]
I think there are 5 main economic effests by the Tokyo Olympics. First, the construction of the stadium and related facilities will promote more employment. More salaries revitalize consumption. Second, special procurements related to the Olympics will occur. For example, people who want to watch competitions with a television of better picture quality replaced old television with a new one and goods related to the Olympics such as mascots are sold. Third, Foreign tourists will spend much money in Japan. BOJ said that 33 million tourists would visit Japan in 2020 if the current pace of increase continued. Tourism is an important market for Japanese economy. Forth, expenses spending sports will increase. While the Olympic takes place, many sponsors related to sports advertise their products and watching each event of sports motivates people to try new sports, so Japanese companies can get benefits. The other is the economic effects after the Olympics. If the Olympics succeed, an impression of Japan will improve. Now, all the countries of the world have bad image because of the earthquake and the nuclear power plant disaster. However, Japan can get trust from other countries and more foreign tourists visit Japan if Japan prove safety through the Olympics. I think the biggest purpose of the Tokyo Olympics is to improve the image of Japan. In addition, the opening celemony is the opportunity which shows Japanese traditional culture and the noble sprit “omotenashi”. The Tokyo Olympics isn’t goal, so Japanese government should consider the scheme leading to the deveropment of Japanese economy after that.